Taiwan bolsters Paraguay ties with $200M data centre deal
The government of Taiwan reportedly plans to deepen its diplomatic relationship with Paraguay through a planned $200 million data centre investment, in a rare technology investment designed to strengthen the pair’s diplomatic relationship.
Bloomberg reported the date centre partnership, which is backed by the Trump administration, is targeting 10-megawatts of computing capacity. It is expected to be operational by the end of 2027.
The data centre will be built on government land near the capital of Asuncion.
The news site noted Taiwan will supply Nvidia chips and supporting equipment, while Paraguay brings cheap hydropower and basic infrastructure to the partnership.
Both sides are in discussions with the US International Development Finance Corporation over financing arrangements.
Sources told Bloomberg Taiwan’s International Cooperation and Development Fund has separately approached Google, Microsoft and Amazon about potentially investing in the project or taking up capacity.
Paraguay is one of only a handful of countries worldwide which still maintains formal ties with Taiwan rather than China, but pressure is growing domestically for a reassessment of the position as neighbouring countries have attracted substantial Chinese investment.
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